ALFI and ABBL have issued a revised version of the Guidelines and recommendations for depositaries. This second release is an update aimed at covering UCITS, as well as improving certain sections of the initial guidelines published in July 2013 which were covering oversight duties and cash monitoring for AIFs.
The analysis has been performed according to the following axis: fiduciary oversight obligations (subscription/redemptions, valuation, investment restrictions, timely settlement of transactions, dividend/income distribution as well as cash flow monitoring), stakeholders (ManCo, AIFM, Fund (UCITS/AIF), Depositary, Delegates), and types of controls (due diligence, assessment of policies and procedures) together with associated frequencies.
On 17 may 2018, ALFI has published an aide-mémoire for the benefit of the Real Estate risk management world, which aims at proposing a list of practical considerations suitable for liquidity stress testing purposes for Real Estate Investment Funds.
Target2-Securities (T2S) will have a significant impact on the European securities industry and will also change the way the fund industry operates. The ALFI T2S working group produced this Q&A to assist the industry professionals in understanding the implications of T2S for funds and how they can capitalise on the infrastructure in their organisation.
The purpose of the document is to provide parties charged with the responsibility for oversight of financial intermediaries (“FI”) in the distribution chain with a set of high-level common principles for their consideration. ALFI believes that this will create efficiencies for the Luxembourg fund industry, as a leading center for cross-border fund distribution.
The aim of this paper is to present to board members and senior management those areas that they may wish to consider when looking at the management of Operational Risks associated with the Distribution/Marketing of funds and when the developing their risk management functions.
Framework for Due Diligence Information Packs for service providers acting as central administrators and/or depositary/custodian
The ALFI working group has now finalised a Framework for Due Diligence Information Packs for service providers acting as central administrators and/or depositary/custodian.
This framework seeks to provide a table of contents upon which service providers (delegates) to which a fund Board, Management Company or AIFM has delegated activities and services can base their preparation of documentation required to support the initial and ongoing due diligence reviews of a fund and/ or its Management Company under Luxembourg regulations. The document should not be considered as an exhaustive list of areas for delegates to cover, nor a prescriptive guide on the approach to a due diligence process. It is intended to facilitate an effective due diligence process for the delegates as well as those undertaking due diligence.
Luxembourg – Successful REIF Center : Lessons learnt and opportunities from the real estate downturn
This document provides information, guidance and practical examples on real estate funds industry relevant topics together with a brief outline of the key advantages, flexibility and opportunities of using Luxembourg in real estate investment fund context.
Practices and Recommendations aimed at reducing the risk of money laundering and terrorist financing in the Luxembourg Fund Industry
In consideration of applicable regulations, this document provides practices and recommendations for the due diligence measures to be applied to investors and intermediaries in foreign jurisdictions, in alignment with international standards, including the FATF recommendations as well as the European Directives 2005/60/EC and 2006/70/EC on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.
Numerous developments in fund regulations and governance have led ALFI to review and update the ALFI Code of Conduct initially published in 2009. According to the most recent survey on fund governance in Luxembourg, 85% of the UCITS surveyed reported that they had adopted the ALFI Code of Conduct.
These guidelines provide guidance to the Luxembourg fund industry, with regard to liquidity risk management for UCITS. This document is also available in Chinese.
The ALFI new Principles for sound stress testing practices guidelines provides insights into current market practices and how a management company could translate different regulatory rules into sound stress testing practice for UCITS.
These guidelines provide a greater level of understanding and consistency of the requirements and expectations related to the Islamic finance sector.